Equipment Financing Made Simple
Finance Equipment for your business through Providence Capital and receive our top rated service and a financing plan tailored to your needs. We are experts in providing equipment financing solutions to businesses across the U.S. We use our decades of industry experience to offer a smooth finance process every step of the way.
Section 179 Explained
How does it work?
Say you have a excavating company. Previously, you would buy some heavy equipment and slowly write it off on your taxes. Year by year, you get to deduct a little as the equipment depreciates. Lets say- it’s $100,000 piece of equipment, you’ll get to slowly write it off $10,000 at a time, over 10 years. So, the biggest benefit of section 179 is that you get to write off the entire purchase price in the year that you purchased. Why is this such a big deal? Being able to write off the entire amount of the $100,000 heavy equipment will help you discount the equipment $35,000. And that’s not all, you’ll get even more benefits if you finance or lease your equipment.
Why Lease or Finance?
Why lease or finance if you can afford to pay for the equipment in full? Because you get additional tax deductions. Oftentimes, your entire monthly lease payment is tax deductible and you can save 35% on your monthly payment. The difference between financing and leasing a piece of equipment is that financing only allows for the interest ( paid during the year ) to be deducted. Depending on your type of businesses, leasing might make more sense because of the tax savings rather than buying the equipment outright. However, when you apply the savings you get, you’ll realize the huge amount of discount you’re getting regardless of financing or leasing.
What Kind of Equipment Qualifies?
- Audio, Video & Broadcast Equipment
- Green Energry
- Heavy Equipment
- IT Equipment
- Manufacturing Equipment
- Medical Equipment
- Office Equipment
- Theater & Cinema Equipment